Business this week

Microsoft was reportedly preparing an update to address unpopular features on its Windows 8 operating platform. Its latest system was launched with much fanfare only last October and described as a “bet the company” moment by Steve Ballmer, Microsoft’s chief executive. Windows 8 was designed to be more compatible with tablets and smartphones, but its dual interface and multi-tiled screens have left many PC-users bewildered. See article

BMCSoftware, a Texan company that manages computer networks for businesses, agreed to be taken private by a consortium led by Bain Capital. At $6.9 billion, it is one of the biggest leveraged buy-outs so far this year.

Mario Draghi, the president of the European Central Bank, vowed “to take further action” to help the euro zone, after more economic data showed little sign of a recovery. The ECB cut its main refinancing rate on May 2nd by a quarter of a percentage point, to 0.5%. Mr Draghi also held out the possibility of reducing the deposit rate for banks to below zero, in effect charging banks for conserving money in the hope that they will lend more. See article

In an unexpected move the Reserve Bank of Australia shaved a quarter point off its benchmark interest rate, bringing it down to 2.75%. The Australian dollar, which is at a 30-year high and hindering Australian exports, fell after the announcement.

Toyota said that a weaker yen was one reason why its net profit almost tripled in the first quarter of the year. The falling currency also helped propel Sony to a small annual profit, its first in five years. The Japanese government’s concerted effort to end deflation has pushed the yen down by 20% against the dollar since mid-November. See article

Portugal’s first sale of a ten-year bond since requesting a bail-out from the EU in April 2011 was heavily oversubscribed. The €3 billion ($4 billion) offer yielded 5.67%, well below the yield of 15% at the height of Portugal’s crisis

Stockmarkets had a buoyant week. The Dow Jones Industrial Average closed above 15,000 for the first time; the S&P 500 and Germany’s DAX also reached all-time highs; and Japan’s Nikkei index and the FTSE 100 hit five-year records.

Wasted youth

The International Labour Organisation, a UN body, once again warned about the long-term damage from youth unemployment, which is set to continue rising worldwide over the next five years. The ILO singled out the Middle East, north Africa and developed countries in the West for particular concern. Young workers there can expect “a future of irregular employment and informality”. See article

HSBC reported a 34% increase in pre-tax profit for the first quarter, to $7.6 billion. The bank’s restructuring programme is paying dividends, cutting costs by $4 billion a year. Since 2011 HSBC has closed 50 of its business units globally and shed 46,000 jobs.

In a victory for whistleblowers, a Spanish court ruled against extraditing a former HSBC employee to Switzerland, where he faces charges of stealing data and violating bank secrecy. Tax authorities in several European countries have used the information provided by Hervé Falciani to go after hundreds of tax evaders.

Barack Obama indicated that he is warming to the idea of letting American energy companies export more liquefied natural gas. Thanks to the boom in shale gas, America will soon produce more gas than it needs, but selling more of it abroad is resisted by environmentalists and those who fear domestic prices will rise. The Department of Energy will decide soon whether to grant licences for gas exports to countries without a free-trade agreement with America.

The spirits of adventure

Diageo confirmed that Ivan Menezes, its chief operating officer, will take over as chief executive from Paul Walsh in July. Mr Walsh has been in the job for 13 years, during which time Diageo has become one of the world’s biggest booze companies by selling off its non-drinks businesses, such as Burger King, and acquiring new drink brands, notably in emerging markets. The challenge for Mr Menezes will be to maintain growth while shifting the focus away from acquisitions.

In America a bill that would compel online retailers to collect a sales tax passed in the Senate. Bricks-and-mortar retailers have long argued that they are put at a disadvantage by having to collect sales taxes on goods they sell, whereas their online competitors generally do not. But the bill, entitled the Marketplace Fairness Act, faces a tougher time in the House of Representatives, where some Republicans say it will in effect be a tax increase.